LGO (LON:LGO) told investors that ongoing drilling at the Goudron field in Trinidad continues to yield results either in line with or better than expectations.
Revealing the latest findings from two wells, one of which is still being drilled, the company said the current programme will add three additional production wells before the end of the year.
“This will lead to a further significant increase in production as we go into 2015," said chief executive Neil Ritson.
The company revealed that ongoing drilling, for the GY-670 well, the seventh of thirty planned wells, is now at a depth of 2,750 feet and 206 feet of net oil pay has been encountered in the Goudron sandstone formation, the well’s shallowest target.
Initially the plan was to drill GY-670 to a depth of 3,100 feet to test the Goudron and Gros Morne reservoirs, but following analysis of other recent well results it has been decided that GY-670 will be drilled deeper to also fully assess the entire Cruse section – which has been measured and analysed by other well too.
GY-670 will now be drilled to a depth of 4,250 feet.
The GY-669 well has now been completed and it has encountered 248 feet of net pay in the Morne Sandstone and Lower Cruse.
LGO has, however, now decided to postpone the fourth and final well from the current drill site, after a minor re-evaluation of the fault configuration in the area concluded the proposed well is not ideally situated.
Consequently it is anticipated that all three wells from the current site will be brought into production slightly earlier than planned, coming online before the end of the year.
First re-completion work will be carried out on the GY-667 well to optimise production.